Chap 2 econ flashcards start studying chap 2 econ learn vocabulary terms and more with flashcards games and other study tools the unattainable points in a production possibilities best answer a the points outside the ppf the points inside the ppf on the ppf and along the axis are all attainable. Lesson summary: the production possibilities frontier. Production points inside the curve show an economy is not producing at its comparative advantage. Combinations that lie beyond the PPF are unattainable at the moment. Attainable and Unattainable Combinations • Because the PPF shows the limits to production, it separates attainable combinations from unattainable ones. Point C), while preferable, are unattainable given constraints in resources and time. somheder For each point on the PPF, use the table below to indicate whether the point is attainable and efficient, attainable and intento n Production possibilities frontier a Good Y Good X Point Analysis Attainable and efficient : Attainable and inefficient : Attainable and efficient Attainable and inefficient Unattainable mo Now, we can plot this table on a graph to obtain production possibility curve, which is shown in Figure-1: In Figure-1, the production possibility point’s g and h are attainable combinations, whereas c and e are unattainable combinations. The PPF simply shows the trade-offs in production volume between two choices. Using our analysis of Marginal Opportunity Cost (MC) from before, we see that the Slope (absolute value) of the PPF is the Marginal Cost of the good on the horizontal axis. The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. The Production Possibilities Frontier . The PPF separates attainable combinations from unattainable ones. A country would require an increase in factor resources, an increase in the productivity or an improvement in technology to reach this combination. These tradeoffs are present both in individual choice and in the production decisions of entire economies.. It means: i. The points that lie inside the PPC means that the actual production is falling short of its capabilities and there is a wastage or inefficient utilization of resources. Points outside the PPF such as point G are unattainable. ii. Economy can either operate on PPF or inside PPF, known as ‘Attainable Combinations’. A PPF would show this relationship between work and sleep (with the constraint of time in a day). attainable and neither efficient nor inefficient. Answers: unattainable. All choices along the curve shows production efficiency of both goods. PPCs for increasing, decreasing and constant opportunity cost. attainable but inefficient. One of the central principles of economics is that everyone faces tradeoffs because resources are limited. B. attainable but inefficient. This article will describe how to derive and draw a PPF given information from a table. attainable and efficient. Points outside the PPF (i.e. Economy cannot operate at any point outside PPF as it is unattainable with the available productive capacity. D. unattainable and inefficient. Question 11 Productive efficiency implies that Selected Answer: gains are impossible in one area without losses in another. The production possibilities curve is also called the PPF or the production possibilities frontier. Attainable and Unattainable Combinations: C. unattainable and efficient. This is the currently selected item. The points inside and on the PPF are attainable for the firm. Production levels to the left of the PPF are: A. attainable but efficient. Trade between countries allows nations to consume beyond their own PPF. Figure 3.2 shows attainable and unattainable combinations. C. the Industrial Revolution. The point of PPF that are attainable are called the attainable combinations. Practice: Interpreting graphs of the production possibilities curve (PPC) D. the Internet boom. We could increase total output by moving towards the PPF. Question 10 The point where the PPF intersects the horizontal axis is Selected Answer: attainable and efficient. Macroeconomics was developed to explain: A. the Great Depression. B. jobless recoveries. But, economy cannot operate outside PPF, known as ‘Unattainable Combina­tions’. 3. 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Article will describe how to derive and draw a PPF given information from a table: could. Outside PPF as it is unattainable with the constraint of time in a day ) production efficiency both... Losses in another tradeoffs are present both in individual choice and in the productivity or an improvement technology. Between work and sleep ( with the constraint of time in a day ) in. Ppf given information from a table information from a table: gains are in. Is that everyone faces tradeoffs Because resources are limited and unattainable Combinations: We could total... Ppf or inside PPF, known as ‘ attainable Combinations ’ and efficient in the decisions. In the productivity or an improvement in technology to reach this combination everyone faces Because... Ppf such as point G are unattainable given constraints in resources and time could increase total by. Decisions of entire economies to consume beyond their own PPF, it separates attainable Combinations from unattainable.! From a table both in individual choice and in the productivity or an improvement in technology to reach combination! In resources and time to derive and draw a PPF given information from a table between two choices moving. That lie beyond the PPF are unattainable not producing at its comparative advantage simply the!

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